There are various entities in the registration of a company. Private limited registration is a type where company ownership split into shares and shareholders. To register a company as a private limited company, it is an obligation to fulfil the following criteria.
- It must have at least two adults to act as a director of the company. There can be up to a maximum of 15 directors.
- It cannot invite the general public for its securities subscription.
- The minimum amount of capital should be Rs. 100 000.
These are the requirements for registering a private limited registration in Bangalore.
What Are the Advantages of a Private Limited Company?
- Compared to the public limited company, the private limited company is easy to form with 2 members.
- It gives the company a status to borrow funds from the market.
- It helps the company with perpetual succession, which means that it has continuous existence until its dissolution.
- The Private Limited Company can commence the business soon after its registration.
- The control and management are generally in the hands of capital owners.
- It can start immediately after the registration.
The process to form a Private Limited Company
- Procure Digital Signature Certificate
- Obtain Director Identification Number (which is issued by the Ministry of Corporate Affairs (MCA).)
- Obtain clearances and NOC certificate from concerned ministries related to the work of the company. Like the Ministry of Environment, Forest and Climate Change etc.
- Reservation of Name through Form INC-1.
- Certificate of Incorporation from the Registrar of Companies.
These are the basic stuff you should know before planning to choose the private limited registration entity.
We have covered this topic in more detail on our website. Check the topics given below.
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